Sarasota, FL 4/4/2008 8:32:20 PM
Tis’ The Financial Reporting Season (ICTL) (PWEB) (DPDW) (NMCH)
Pennycents Magazine Reports on Penny Stock Companies
Pennycents Magazine, the market’s most valuable research tool covering micro-cap, penny stocks and otcbb equities, issued the following daily column by Brian Kline.
Most OTCBB companies use a December 31 to December 31 fiscal calendar, which means SEC 10K annual reports for 2007 are now being filed. While it is always great when a young company reports profits, penny stock investing is not always about finding profitable companies. Strong revenue growth often highlights companies demonstrating financial performance that will soon pay off for investors.
Typically, the payoff to investors will either be an increase in the stock price as other investors recognize the growth potential of these companies. Or a larger company will pay a premium price to acquire a promising young company. The financial reports of the businesses that follow show such promise and are worth investors’ time and effort to take a closer look.
International Commercial Television (ICTL) is a global consumer products company marketing unique and effective "Fountain of Youth" products. The company distributes products to over 35 countries worldwide. They market health and beauty products under the Derma Wand and DermaVital Skincare brands. Marketing and distribution is through infomercials, live home shopping television, mass retailers, spas and salons, online shopping, and various other distribution channels.
International Commercial Television posted a 280% increase in revenue for 2007. Gross revenue was $11,323,505 in 2007 compared to $2,977,074 in the same period of 2006. The company also posted a net profit of $1,475,775, a 330% improvement over 2006. The CEO stated "ICTV expects to continue this strong momentum by expanding distribution channels, introducing unique product offerings and executing on innovative marketing initiatives for the Derma Wand in 2008."
Pacific WebWorks (PWEB) provides software programs for small businesses that want to create, manage, and maintain an effective Web strategy including full e-commerce capabilities. The company’s wholly owned subsidiary IntelliPay develops and provides electronic transaction processing and payment products and services. The wholly owned subsidiary TradeWorks Marketing is a sales and marketing organization created to market Pacific WebWorks and IntelliPay products.
This week Pacific WebWorks reported a 250% growth in revenue for 2007 compared to 2006. Revenues for 2007 totaled $10,711,770. Net income for 2007 was $276,228 following a $1M loss in 2006. Management attributes this major financial improvement to a 750% increase in recurring hosting, gateway and maintenance fees, which amounted to $8,968,344 of its revenue. Management also reported a 600% increase in its customer base. Customer count grew from approximately 6,500 at year-end 2006 to nearly 40,000 customers at year-end 2007.
Deep Down (DPDW) provides off shore, beneath the sea, services. Services include installation, engineering, support services, along with custom fabrication of components for the control, umbilical, and pipeline industries. The Company's ElectroWave subsidiary offers products and services in the fields of electronic monitoring and control systems for the energy, military, and commercial business sectors. Its Mako subsidiary serves the growing offshore petroleum and marine industries
Deep Down reported 2007 revenues of $19,389,730, an increase of $10,568,581 or 120%, compared to revenue of $8,821,149 for the comparable period in 2006. Net income for 2007 was $952,509, an increase of $3,764,136 compared to a loss of $2,811,627 for the comparable period in 2006. Management did not provide a 2008 financial forecast.
NewMarket China (NMCH) is a technology company developing the Chinese market by specializing in software engineering, high quality software development, and digital multimedia outsourcing services delivered to customers globally. The company is also a systems integrator and reseller of major global hardware brands in the Chinese domestic market. NewMarket China has its headquarters in Dallas with operations in Shanghai and Beijing. Their marketing efforts intend to bridge the business culture gap between Western and Eastern clients. They assist western clients in realizing the advantages of the high quality, low cost technology products and services available from China. They also assist Western clients in localizing products and services to realize the tremendous growth potential available by expanding into the Chinese Market.
This week’s 10KSB filing reported a revenue increase of 36% over 2006. Revenue for 2007 was $40,007,006 compared to $29,509,968 in 2006. Net income grew 79% from $244,929 in 2006 to $437,824 in 2007. Management’s 2008 forecast is 25% percent growth to $50 million in profitable revenue. The anticipated revenue increase is based on expected organic growth from current operations.
The writer does not own shares in the above stocks.
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